$300 Cash Flow

[Dennis Nemitz]

I am looking at a property that will have $1300 per month in expenses and gets $1600 in rent from established renters. There will be significant room to move on rent in the current market, but I will only want to raise it when the current renters move out. It has been well maintained and is in a great neighborhood. It is no where near the 2% rule, but at about 1%. Should I run from this deal?

[Josh Farrer]

I am not positive, but I believe CF=cash flow COC= cash on cash this one I am sure on ROI=return on investment

As for 2% rule, in my area it's not easy to do. If you stick to the 50% rule I think you'll be fine. (Take debt service from 50% of rent and the left overs are cash flow)